Vol. 2 Issue. 9 - September 2010 www.cannonfinancial.com
Planning Ideas - Making Gifts in Excess of the Exemption in 2010
Clients tend to balk at paying taxes unless they absolutely have to, but for high net-worth clients who will eventually pay estate taxes (assuming the estate tax returns in 2010), making taxable gifts to younger-generation family members and paying gift taxes can make sense for several reasons.
Here’s why: Not only does the value of the transferred property escape estate taxation at the donor’s
death, all subsequent appreciation also avoids estate taxes in the donor’s generation - Read More.
Practice Management - Rev Up Your Branding Message (Part 1)
One of the most valuable tools in your tool box is a finely-honed branding message. Your
branding message describes how you uniquely serve your clients. It articulates the type of work you do, the type of client you work with, and the value you add that differentiates you from the competition.
The Basics - Your branding message has several uses. It can be used to: Create interest with new prospects; Reposition with existing clients; Generate interest among external centers of influence - Read More.
Regulation and Compliance -
Proposed Changes to Rule 12b-1
In July, the SEC trotted out proposed rules that would alter the framework for how mutual fund companies charge for and disclose "12b-1 fees." So far, commentary on the proposed rules has been mostly negative, leading some to believe that while Rule 12b-1 may eventually be changed, the changes will not be as significant as originally believed. Read More.
Taxes - A Looming Brawl
The "Bush Era" income tax cuts are about to expire at the end of this year, and the federal estate and generation-skipping transfer (GST) taxes are set to return in 2011. Add to that a deeply divided Congress, upcoming November mid-term elections, and an economic recovery that has been described as fragile, and the stage is set for a knock-down drag-out battle over taxes. How it plays out is likely to have a major impact on your high-net worth clients.
The Big Picture - In 2001 and 2003 the Bush Administration and the then Republican Congress enacted a host of
income tax cuts and repealed the federal estate and GST for 2010. The income tax cuts along
with the estate and GST taxes repeal are set to “sunset” at the end of this year.